Can I keep my home ... or other property in a Bankruptcy?

The answer is ... it depends. Most of the time, there are ways to keep a home and other property. But a debtor needs to be ready to help his or her attorney. Debtors need to gather and produce the documents for their bankruptcy attorneys to show value and ownership. Sometimes, these documents can be a hassle to obtain.

The first issue is to determine the value of the real estate. This can be a simple as using a couple real estate websites that estimates property value for free. A debtor usually has a sense if these sites are accurate. If the sites are not accurate, a homeowner can work with a real estate agent to work up a market analysis on the home. This usually take a little time with an agent. Finally, some jurisdictions may require a full appraisal, which will require paying an appraiser a fee.

The next consideration is the mortgage balance or payoff amount. The balance can be found on the most recent mortgage statement. Most mortgage companies have a place on their website to calculate a mortgage pay off figure. A debtor should provide these documents to his or her attorney.

Subtracting the mortgage balance from the property value will give the debtor the amount of equity he or she has in the property. Equity is the part of t
he house or property that is free of the mortgage lien and the value you want/need to protect. Once it is determine what value of the house or property is free of the mortgage, the debtor has to determine how or what type of ownership he or she has.

If the debtor owns a home alone, that is easy - a single person usually owns a house or real property in "fee simple." That means the person owns it completely with no other owners. The debtor would own all the equity.

It becomes more complicated when a debtor owns a house with someone else. If they are not married, they are generally "tenants in common" or "joint tenants." If the debtor is married and lives in Pennsylvania*, the home could be owned as "tenants by the entireties." This type of ownership provides the strongest protection from creditor and can offer a great advantage is a bankruptcy.

The only way to know for sure the type of ownership a person holds is to review a copy of the deed. Many people lose track of their deed. A copy can be found at the county recorder of deeds. Again, a fee is usually charged for the copy. But it is an important document and should be provided to the debtor's attorney. The chances are the trustee will ask for it at the creditor's meeting if not provided sooner.

While gathering these documents may be a hassle, debtors need to be ready to work with their attorneys to get this information.

#bankruptcy #Chapter7 #Chapter13 #MontgomeryCounty #lawfirm #BucksCounty #Pennsylvania

You've been sued ... now what!

Image by hywards at FreeDigitalPhotos.net

One of my clients contacted me in a panic after receiving several letters from other bankruptcy attorneys informing him he had been sued in civil court for one of his credit card debts. Imagine opening a letter from an attorney and the top line reads something like:

"CREDITORS HAVE THEIR ATTORNEYS. SO SHOULD YOU!"

This letter went on to explain a law suit was filed in county court and it was time to act. Of course the attorneys sending the letters were offering their services. Different people have different thoughts about this practice but the letters were right, it was time for my client to act. 

The operative word here is "act" and not "react." In Pennsylvania, people still have time to think and plan after a law suit is filed. As an attorney, I prefer to have more time to plan but the filing of a complaint in county court is not the end of the process... actually it is a beginning.

The Plaintiff (the party bringing the suit) must serve the complaint on the Defendant (debtor being sued). In Pennsylvania, a defendant in a law suit usually has 20 days to answer. If he or she doesn't answer, the Plaintiff must give the Defendant 10 days notice that the Plaintiff intends to ask the court of a judgment if the Debtor fails to answer the complaint. So a debtor in Pennsylvania usually has at least 30 days to consider his or her options.

While waiting until you are sued to consider bankruptcy can limited your options, I suggest it is not the time to panic and jump at the first option offered. I recommend, if a person receives a letter like I describe above, he or she pause, be grateful for the "heads up" and act ... not overreact.  Take a moment to assess the situation and seek legal help. It may be in one of those letters and maybe not. Take a little time to educate yourself and find the help that makes you feel comfortable.

If you want assistance, legal representation, or just want to know more about Mark M. Medvesky or Wells, Hoffman, Holloway & Medvesky LLP, check out our website at www.whhmlaw.com.

#bankruptcy #Chapter7 #Chapter13 #MontgomeryCounty #lawfirm #BucksCounty #Pennsylvania


Do you think you make too much to ever need to file bankruptcy?

"A Six-Figure Income May Not Shield You From a Shock - Monthly income and spending bounce around more than many people realize—or prepare for." Bloomberg by Suzanne Woolley; ‎March‎ ‎20‎, ‎2017‎. Check out this article.

Do you think you make too much to ever need to file bankruptcy?

Image courtesy of chrisroll
at FreeDigitalPhotos.net

"Paying big medical bills had a lasting impact on financial stability. Many families have to turn to credit card debt to cover big medical payments. "A year after the extraordinary medical payment families still have 9 percent more revolving credit card debt and 2 percent lower cash reserves than baseline levels, according to the report." 

Think about hitting several of these stress months in a short period. It can start a downward spiral. Stuff happens and sometimes people need a break.

If you want assistance, legal representation, or just want to know more about Mark M. Medvesky or Wells, Hoffman, Holloway & Medvesky LLP, check out our website at www.whhmlaw.com.

#bankruptcy #Chapter7 #Chapter13 #MontgomeryCounty #lawfirm #BucksCounty #Pennsylvania

Powers-of-Attorney, Wills,Trusts; Agents, Executors, Trustees - What do they do and when do they do it?

Many people are not clear on the differences between Powers-of-Attorney, Wills, and Trusts. This is a quick basic explanation. I hope it helps.

A Power-of-Attorney (POA) is a document that grants one person the authority to take action and enter into commitments for another person. The person giving the authority is known as the Principal. The person given and exercising the POA is known as the Agent for the Principal. The POA is only good while the Principal is living. Once Principal passes, the POA is extinguished.

A Will is a document that directs the distribution of a person's assets, their things, after they pass.  The person having the Will prepared for their assets is the Testator. The Executor oversees the distribution. The property of the deceased is the Estate. The handling of the Estate is known as administering the Estate or the Administration of the Estate. A Will has no effect until the Testator passes.

A Trust is an agreement between a property owner and a second person or entity to take possession of the property and maintain it for the benefit and use of a third person, group of people, or an organization. The property owner establishing the Trust is the Settlor. The property usually includes money and investment accounts. It can include real property and other assets as well. The person who manages the Trust is a Trustee. The Trustee owes a special duty to the Settlor. It I called a fiduciary relationship. The Trust can be established before or after the settlor's death.

This a simple description to help people understand the basic concepts.  If you want assistance, legal representation, or just want to know more about Mark M. Medvesky or Wells, Hoffman, Holloway & Medvesky LLP, check out our website at www.whhmlaw.com.


#Bucks_County #lawyer #lawyers, #MontgomeryCounty #Souderton #Law_Firm #Wills #Power-of-Attorney #Living_Will #Healthcare #Trusts 

 

Bankruptcy Creditors Meetings - proof of social security number

Over the past several weeks, this has become an issue. It is simple to address but can stop a creditors meeting before it starts. One of the requirements the trustee has during the meeting is to verify the debtor's Social Security Number (SSN). It is important because most financial data in our lives keys off our SSN.

Photo from Social Security gov site. For more general
info on social security cards and numbers. 

The main document used to verify is our actual social security card. Since identity theft has become so prevalent, that number has been stripped off most other forms of ID. So I always ask my clients if they have their social security card available and advise them up front they need to present it at the meeting. The meeting of creditor notice from the court also states at the top of the notice the debtor's social security card is required and I try to sent at least two e-mails stating to my clients they need their social security card. But with all the emotion going on during this time, people will still forget their card or realize too late they do not know where it is.

There are other forms of ID that contain your SSN. Medicare cards have your SSN and I have had clients use them to verify their SSN. I also know as a retired military reservist, my retiree card has my SSN though I have not had anyone use a retiree card yet. If you do not have some proof to verify your SSN, the creditors meeting stops then and generally, will be continued to give debtor time to replace their social security card if they need to. No one wants to have their creditors meeting continued.

Bottom-line, prepare for your creditors meeting and pack everything up in a file you are asked to bring. If you do not have a document available to prove your SSN, let your attorney know so he or she can deal with it before you are sitting in front of the trustee. If none of this works for you, remember, "Hey it happens!" You should be given a little time to fix it the first time.

If you want assistance, legal representation, or just want to know more about Mark M. Medvesky or Wells, Hoffman, Holloway & Medvesky LLP, check out our website at www.whhmlaw.com.

#bankruptcy #Chapter7 #Chapter13 #MontgomeryCounty #lawfirm #BucksCounty #Pennsylvania